Sidus Space outlines late 2026 LizzieSat-4 and LizzieSat-5 launches while expanding all-domain product commercialization

Earnings Call Insights: Sidus Space (SIDU) Q3 2025

Management View

• CEO Carol Craig stated that Sidus Space continued expanding its vertical integration, advanced the LizzieSat constellation, and strengthened partnerships serving commercial and defense customers. She explained the company aims to deliver "full-spectrum solutions from design and manufacturing to on-orbit operations and data services with the agility to meet evolving mission requirements."
• Management highlighted a strategic shift toward diversified, recurring revenue models and detailed advancements in LizzieSat, describing the satellites as "precision-engineered microsatellites built to deliver mission-critical performance."
• Craig announced significant progress on the mobile launch 2 contract, noting it expanded from an original value of approximately $4 million to over $8 million and is nearing completion, setting the stage for "improved gross margins and stronger revenue visibility as well as a reconfigured facility ready for expanded satellite and defense manufacturing."
• The CEO emphasized the launch cadence, reporting that "in just over a year, we launched 3 Sidus-designed, Sidus-built hybrid 3D-printed satellites with onboard AI and multiple sensors at a pace that allowed us to rapidly integrate lessons learned into each successive mission."
• Craig stated, "This quarter, we completed 2 successful capital raises with funds to be invested in commercializing all-domain product lines, expanding the LizzieSat constellation with LizzieSat-4 and LizzieSat-5, and advancing our Orlaith AI ecosystem."
• Adarsh Parekh, CFO, said, "Momentum from 2024 in the first half of 2025 carried into the third quarter of 2025, which reflects both our transition to commercialization of dual-use, multi-domain products and the near-term financial impacts of scaling a deep-tech, space-based enterprise."

Outlook

• Management indicated that 2 additional LizzieSat spacecrafts are in production for a planned late 2026 launch, featuring "advanced software-defined imagers and increased onboard processing capability."
• CEO Craig emphasized the expectation of "improved gross margins and stronger revenue visibility" as the mobile launcher 2 contract completes and more resources shift to "higher-margin satellite and data programs."
• The company expects the Fortis VPX computing suite, which is "on track for year-end validation," to contribute revenue starting in 2026.

Financial Results

• CFO Parekh reported total revenue for the first 9 months of 2025 was approximately $2.8 million, down from $3.8 million in the same period in 2024, attributing the decline to a strategic shift away from legacy contract work toward higher-value commercial space and AI-driven solutions.
• For the 3 months ended September 30, 2025, total revenue reached $1.3 million, a decrease from about $1.9 million in Q3 2024.
• Cost of revenue for the quarter rose to $2.6 million, up 42% from the prior year, primarily due to increased depreciation and higher input costs.
• Gross profit for Q3 2025 was a loss of $1.3 million compared to a profit of $38,000 in Q3 2024, with CFO Parekh stating this was "primarily due to higher depreciation from recently capitalized assets, which are essential to future revenue streams, contract mix evolution, reduced contribution from legacy services as we transition to higher margin recurring revenue models."
• SG&A expenses for the quarter totaled $4.3 million, up from $3.2 million in Q3 2024, reflecting "strategic head count growth aligned with our move to higher-value offerings, expanded mission operations for satellite support, increased software infrastructure investment, accrued equity compensation and employee bonuses and higher depreciation expense."
• Adjusted EBITDA loss for Q3 2025 was $4.0 million, an increase from Q3 2024. Net loss for the quarter was $6 million compared to $3.9 million in the same period of the prior year.
• As of September 30, 2025, Sidus had $12.7 million in cash.

Q&A

• CEO Craig responded to a question about Fortis VPX commercialization, indicating the first three products are on track for release to production in January 2026 and that "customer integrations and revenue contributions" are expected soon after.
• When asked about the LizzieSat-3 commissioning and the impact of additional satellites, Craig explained, "The LS-3 commissioning is progressing well because there are multiple payloads and sensors along with our integration of updated and enhanced software, it isn't a quick process. But our satellites have a 5-year design life, and we're manufactured with that time line in mind. The additional satellites in production, currently LS-4 and LS-5 expand hosted payload capability, data availability and on-orbit AI throughout."
• On the Fortis VPX and FeatherEdge customer pipeline, Craig stated, "We have active early access programs with both government and commercial customers for our proven FeatherEdge platform. And several have already begun transitioning toward multiyear hardware agreements."
• Regarding geographic revenue mix, Craig noted "strong momentum internationally, especially among allies seeking sovereign U.S. origin multi-domain capabilities."
• On backlog, Craig indicated it is "increasingly being driven by VPX SOSA hardware, engineering services and LizzieSat integrations."
• Discussing the recent capital raise, Craig said it was intended to "accelerate innovation and then fund growth."
• On alignment with DoD priorities, Craig explained, "We believe Sidus' technology road map aligns directly with that need. Our strength in autonomy, rapid deployment, ruggedized edge computing and multi-mission sensing allow us to deliver space-based nodes that are capable of operating as part of a larger adaptive defense network."
• Regarding the lunar-capable LizzieSat, Craig stated, "There are very few U.S. companies that could provide smaller, cost-effective lunar buses, and we believe our early-mover position creates a strategic opportunity."

Sentiment Analysis

• Analysts' questions centered on product commercialization timelines, customer adoption, and revenue mix, with a neutral to slightly positive tone, seeking clarity on execution and market positioning.
• Management maintained a confident tone, emphasizing adaptability, recurring revenue, and innovation: "I'm confident that Sidus is built to remain resilient and adaptable regardless of the external landscape." Confidence was also reflected in statements about funding, technology progress, and alignment with defense priorities.
• Compared to the previous quarter, analysts' tone remains largely neutral, while management's tone has grown more optimistic about commercialization, recurring revenue, and product launches.

Quarter-over-Quarter Comparison

• The current quarter emphasized diversification, completion of the mobile launch 2 contract, and new capital raises, while the previous quarter focused more on the initial commercialization and the commissioning of LizzieSat-3.
• There is a stronger emphasis this quarter on recurring revenue, defense and commercial customer expansion, and further product launches, particularly the late 2026 planned launches for LizzieSat-4 and LizzieSat-5.
• Key metrics show revenue and profit declines compared to the previous year, with continued investment in infrastructure, personnel, and R&D.
• Management's tone this quarter highlights increased confidence in the shift from R&D to commercialization and recurring revenue, while analysts' focus remains on execution and customer traction.
• Strategic priorities have evolved from establishing product-market fit to accelerating commercialization and scaling production.

Risks and Concerns

• CFO Parekh cited "ongoing global supply chain pressures impacting manufacturing operations" and higher input costs as challenges.
• Management warned that "uncertainty around government funding and shifting federal budgets" could affect revenue timing but cited a diversified revenue model as a hedge.
• The CFO also referenced "the near-term financial impacts of scaling a deep-tech, space-based enterprise."
• Management indicated plans for "meaningful cost reduction activity and operating efficiencies to support long-term profitability."

Final Takeaway

Sidus Space management highlighted progress in vertical integration, rapid satellite deployment, and a strategic pivot toward recurring, diversified revenue streams. The company is preparing for the commercialization of new all-domain product lines and expects revenue contributions from the Fortis VPX suite beginning in 2026. With LizzieSat-4 and LizzieSat-5 in production for a targeted late 2026 launch and a completed capital raise supporting expansion, Sidus Space positions itself for scalable growth in commercial, defense, and civil markets, despite ongoing supply chain and budgetary uncertainties.

Read the full Earnings Call Transcript